Saudi non-oil activities grew 4.9% YoY during the second quarter of 2024, exceeding initial estimates of 4.4% released at the end of July.
Details
General Authority for Statistics’ data showed that oil activities declined by 8.9% YoY between April and June.
This led to a contraction in the gross domestic product (GDP) by 0.3% YoY, even though it saw a 0.9% rise compared to the first quarter of this year.
So what
Preliminary estimates in July indicated a larger GDP decline by 0.4% YoY during Q2 2024.
Saudi Arabia’s GDP had seen a 1.7% downtick in the first quarter partly on the back of oil activities.
Some context
KSA, the largest Arab economy, is seeing its growth hampered due to declining oil prices as well as oil production cuts agreed upon by the OPEC+ alliance.
Now what
Last week, the International Monetary Fund (IMF) projected that the Kingdom’s economy would grow 4.4% in the medium term and 4.7% in 2025 as oil production cuts are gradually lifted in the coming period.
